Manufacturers remain positive as indicated by the fact that producer confidence increased further to reach 8.6 in October. Since mid-2006, the mood indicator for manufacturing industry has remained high.
Producer confidence consists of three component indicators: anticipated output over the next three months, producers’ opinions about the stock of finished products and the order position. Compared to September, manufacturers were particularly optimistic about their future production and the stock of finished products. Producers’ opinions on their order position hardly changed.
Producers indicating an increase in the amount of orders received outnumbered those who think they received fewer orders. The number of domestic and foreign orders increased modestly. The order position index (orders received expressed in months of work) was already high and increased further to 114.5.
Manufacturers also remained optimistic about employment. In October, the number of manufacturers expecting to have to recruit new staff again marginally outnumbered those expecting to have to cut back on staff.
According to Dutch manufacturers, their competitive position on the domestic market improved slightly. On the foreign market inside as well as outside the EU, they thought their competitive position had not changed. Manufacturers expecting an increase in foreign sales over the next three months outnumbered those who anticipated a decline. The capacity utilisation rate of production installations rose marginally to 84.0 in October.
Producer confidence in manufacturing industry